Buy to Let in Durham, High ROCE

The proposed strategy is to acquire the property and let it to tenants for consistent rental income and longer-term capital growth. The figures should be reviewed alongside local demand, expected running costs and finance terms.
The agent has highlighted that this deal offers a high return on capital employed, allowing your investment to work hard in generating you income.
The agent suggests this deal has great value-uplift potential.

A great opportunity to acquire a terraced house in need of improvement, but capable of generating significant returns from both value uplift and cashflow.

Financial Information
Current value: £70,000
Purchase price: £60,000
Purchase costs: £22,000
Refurb/works cost: £7,500
Sourcing fee: £2,500
GDV: £90,000
Monthly profit (£): £375
Annual profit: £4,500
Monthly rent: £600
Annual rent: £7,200
ROCE (%): 58%
Yield: 12%
Money left after refinance: £7,750
Investment required: £30,250